2010/11 will be the first fiscal year for sometime to feature a top tax rate of 50%. With national insurance the marginal rate will be as high as 61.5%. If you earn it you will expect to pay tax on it As ever top earners may be able to effect some changes that will help reduce the impact.
Tax Saving Tips
- Timing of financial decisions, using tax efficient saving vehicles and maximising allowances may help mitigate the cost.
- Aim for capital gains rather than income. The former is only taxed at 18% and you have an annual exemption allowance of £10,000 worth of gains. Equalise gains between spouses to get 2 sets of relieves and lower rates.
- Consider cashing investments like treasury stock and some life assurance bonds in 2009/10 as the gain is treated as income.
- Discuss trust income arrangements with your advisers so complex new rules apply in the next tax year.
- Review your pension arrangements in terms of savings and income draw down to get the amounts in the right year.
- Some people may be able to bring income forward (like bankers bonuses) this may save tax but it will be payable early.
- Consider deferring capital allowances and reclaiming tax losses until next year.
- Avoid being too creative as a new team has been set up by HRMC aimed at evasion and particularly income generating foreign assets.
great tips, thanks for the article, i learn alot by reading your article, keep it up.. thanks!
Financial advisers do not have a financial interest in an excessive, called shake an account and instead has a direct economic interest in increasing the value of a customer’s account. Asset-based fees usually different, based on the category of assets in the account of the lower rate debt that will be charged a higher rate and the highest rate of equities with the cash drawing.